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Garcia Company has 11,900 units of its product that were produced at a cost of $178,500. The units were damaged in a rainstorm. Garcia can sell the units as scrap for $35,700, or it can rework the units at a cost of $55,600 and then sell them for $73,200. (a) Prepare a scrap or rework analysis of income effects. (b) Should Garcia sell the units as scrap or rework them and then sell them? GoSnow sells snowboards. Each snowboard requires direct materials of $138, direct labor of $49, variable overhead of $59, and variable selling, general, and administrative costs of $24. The company has fixed overhead costs of $279,000 and fixed selling, general, and administrative costs of $349,000. The company has a target profit of $452,000. It expects to produce and sell 10,000 snowboards. Compute the selling price per unit using the variable cost method. (Round your intermediate calculations and final answer to nearest whole dollar amounts.) Radar Company sells bikes for $490 each. The company currently sells 4,350 bikes per year and could make as many as 4,690 bikes per year. The bikes cost $260 each to make: $185 in variable costs per bike and $75 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 340 bikes for $460 each. Incremental fixed costs to make this order are $70 per bike. No other costs will change if this order is accepted. (a) Compute the income for the special offer. (b) Should Radar accept this offer? Beto Company pays $6.30 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is considering making the part. Making the part would cost $6.90 per unit for direct materials and $1.00 per unit for direct labor. The company normally applies overhead at the predetermined rate of 200% of direct labor cost. Incremental overhead to make the part would be 80% of direct labor cost. (a) Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.) (b) Should Beto make or buy the part

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